Senate Bill S2976C

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2976

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 4, 2011
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax  law,  in  relation  to  tax  lien
  transfers; and to repeal title 4 of article 9 of the real property tax
  law relating to acceptance of taxes from certain loan corporations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Title 4 of article 9  of  the  real  property  tax  law  is
REPEALED and a new title 4 is added to read as follows:
                                 TITLE 4
                    TAX LIEN TRANSFER AUTHORIZATIONS
SECTION 960. LEGISLATIVE INTENT.
        961. DEFINITIONS.
        962. TAX LIEN TRANSFER.
        963. TAX LIEN TRANSFER AUTHORIZATION.
        964. TAX LIEN TRANSFER CERTIFICATE.
        965. PROPERTY TAX LIEN PAYMENT AGREEMENT.
        966. FORECLOSURE.
        967. REDEMPTION.
  S  960.  LEGISLATIVE  INTENT. THE LEGISLATURE FINDS THAT LOCAL GOVERN-
MENTS ARE STRUGGLING UNDER THE WEIGHT OF INCREASED COSTS, REDUCED REVEN-
UES AND INCREASED STRESSES ON THEIR RESPECTIVE  MUNICIPAL  BUDGETS.  THE
LEGISLATURE  ALSO  FINDS  THAT  PROPERTY OWNERS ARE STRUGGLING UNDER THE
WEIGHT OF HIGH PROPERTY TAXES AND NEED SOME ASSISTANCE IN  PAYING  THOSE
TAXES IN ORDER TO PREVENT FORECLOSURE AND THE SALE OF THEIR PROPERTY TAX
LIENS  TO  THIRD PARTIES INVOLUNTARILY. THE LEGISLATURE FINDS THAT IT IS
IN THE BEST INTERESTS OF THE RESIDENTS OF THE STATE OF NEW YORK AND  THE
LOCAL  GOVERNMENTS  TO  ALLOW  PROPERTY OWNERS TO VOLUNTARILY ENTER INTO
AGREEMENTS WITH PRIVATE ENTITIES TO PROVIDE FOR  THE  PAYMENT  OF  THEIR
PROPERTY  TAXES.  CURRENTLY,  PROPERTY  OWNERS ARE REQUIRED TO PAY THEIR
TAXES IN FULL. ALLOWING PROPERTY OWNERS TO  INCREASE  THE  PAYMENT  TERM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08672-01-1
              

S. 2976                             2

WILL  HELP  ALLEVIATE THE PRESSURE ON THESE ALREADY FINANCIALLY STRESSED
RESIDENTS AND BUSINESS OWNERS. MOREOVER, LOCAL GOVERNMENTS WILL INCREASE
THEIR REVENUE COLLECTIONS AND SPEND LESS ON ACTIONS  TO  COLLECT  UNPAID
TAXES,  SUCH  AS  TAX  LIEN SALES AND TAX LIEN FORECLOSURES, BECAUSE THE
PROPERTY TAX PAYORS WILL PAY TAXES IN FULL, ALL AT ONCE.
  S 961. DEFINITIONS. AS USED IN THIS TITLE THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  1.  "PROPERTY  TAX  PAYOR"  MEANS  A PERSON WHO ADVANCES MONEY FOR THE
PAYMENT OF REAL PROPERTY TAXES DIRECTLY TO A MUNICIPAL GOVERNMENT AT THE
REQUEST OF A PROPERTY OWNER. ALSO REFERRED TO AS A "TRANSFEREE."
  2. "PROPERTY TAX PAYMENT" MEANS THE AMOUNT OF MONEY ADVANCED  FOR  THE
PAYMENT  OF  PROPERTY  TAXES  PURSUANT  TO  A PROPERTY TAX LIEN TRANSFER
AUTHORIZATION AND PROPERTY TAX LIEN PAYMENT AGREEMENT.
  3. "TAX LIEN TRANSFER AUTHORIZATION" SHALL HAVE  THE  MEANING  AS  SET
FORTH IN SECTION NINE HUNDRED SIXTY-THREE OF THIS TITLE.
  4. "TAX LIEN TRANSFER CERTIFICATE" SHALL HAVE THE MEANING AS SET FORTH
IN SECTION NINE HUNDRED SIXTY-FOUR OF THIS TITLE.
  5. "PROPERTY TAX LIEN PAYMENT AGREEMENT" SHALL HAVE THE MEANING AS SET
FORTH IN SECTION NINE HUNDRED SIXTY-FIVE OF THIS TITLE.
  6. "REFEREE'S DEED" SHALL MEAN THE DEED ISSUED TO THE PURCHASER AT THE
FORECLOSURE SALE AT THE COURTHOUSE STEPS.
  7.  "TRANSFEREE"  MEANS A PERSON WHO ADVANCES MONEY FOR THE PAYMENT OF
REAL PROPERTY TAXES DIRECTLY TO A MUNICIPAL GOVERNMENT AT THE REQUEST OF
A PROPERTY OWNER TO WHOM  A  PROPERTY  TAX  LIEN  IS  TRANSFERRED.  ALSO
REFERRED TO AS A "PROPERTY TAX PAYOR."
  S 962. TAX LIEN TRANSFER. 1. A PROPERTY OWNER MAY EXECUTE AN AFFIDAVIT
IN  THE  FORM  OF A TAX LIEN TRANSFER AUTHORIZATION THAT CONSENTS TO AND
AUTHORIZES THE TRANSFER OF THE PROPERTY TAX LIENS ON HIS OR HER PROPERTY
FROM A MUNICIPAL GOVERNMENT TO A PROPERTY TAX PAYOR IF THE PROPERTY  TAX
PAYOR PAYS THE PROPERTY TAX PAYMENT ON BEHALF OF THE PROPERTY OWNER.
  2. UPON RECEIPT BY THE TAXING JURISDICTION OF THE PROPERTY OWNER'S TAX
LIEN  TRANSFER AUTHORIZATION AND THE PROPERTY TAX PAYMENT FROM THE PROP-
ERTY TAX PAYOR, THE REAL PROPERTY TAX LIEN SHALL BE TRANSFERRED FROM THE
TAXING JURISDICTION TO THE PROPERTY TAX PAYOR AS REFLECTED IN A TAX LIEN
TRANSFER CERTIFICATE. THE TAX LIEN TRANSFER  CERTIFICATE  SHALL  CERTIFY
THAT  THE  TAXING  JURISDICTION  RECEIVED WRITTEN AUTHORIZATION FROM THE
PROPERTY OWNER TO TRANSFER THE TAXES OWED; THAT THE PROPERTY  TAX  PAYOR
PAID  THE PROPER AMOUNT OWED BY THE  PROPERTY OWNER; AND THAT THE TAXING
JURISDICTION'S LIENS ARE TRANSFERRED TO THE PROPERTY TAX  PAYOR  IN  THE
AMOUNTS LISTED IN THE TAX LIEN TRANSFER CERTIFICATE.
  3.  THE  CREATION  OF  THE  TAX LIEN TRANSFER CERTIFICATE SHALL NOT BE
DEEMED TO CREATE A NEW TAX  LIEN.  THE  TRANSFEREE,  OR  ITS  HEIRS  AND
ASSIGNS,  SHALL  HAVE  THE  SAME RIGHTS, REMEDIES, AND PRIORITIES AS THE
TAXING JURISDICTION, SUBJECT TO THE TERMS AND CONDITIONS OF THE PROPERTY
TAX LIEN PAYMENT AGREEMENT.   THE CREATION  OF  THE  TAX  LIEN  TRANSFER
CERTIFICATE SHALL NOT BE DEEMED TO ALLOW THE PROPERTY TAX PAYOR TO FORE-
CLOSE  OR  IN  ANY  MANNER ACT UPON THE TAX LIEN COVERED BY THE TAX LIEN
TRANSFER CERTIFICATE EXCEPT FOR THE COLLECTION OF TAXES, AS PROVIDED FOR
IN THE PROPERTY TAX LIEN PAYMENT AGREEMENT.
  4. THE TAX LIEN TRANSFER CERTIFICATE SHALL BE RECORDED IN  THE  COUNTY
CLERK'S  OFFICE  WHERE  THE  PROPERTY  IS SITUATED, AND THE PROPERTY TAX
PAYOR SHALL PAY ANY STATUTORY FEE FOR SAID RECORDING.
  S 963.  TAX LIEN TRANSFER AUTHORIZATION. A SWORN AFFIDAVIT OF A  PROP-
ERTY  OWNER  AUTHORIZING  THE  TRANSFER  OF  TAX  LIENS MUST CONTAIN THE
FOLLOWING INFORMATION:
  1. THE NAME OF THE COUNTY WHERE THE PROPERTY IS LOCATED;

S. 2976                             3

  2. A STATEMENT BY A NOTARY PUBLIC IDENTIFYING THE  AFFIANT(S),  EITHER
PROPERTY  OWNER(S) OR AUTHORIZED REPRESENTATIVE(S), AND STATING THAT THE
AFFIANT(S) PERSONALLY APPEARED BEFORE THE NOTARY AND MADE THE STATEMENTS
UNDER OATH;
  3. A STATEMENT BY THE AFFIANT THAT HE OR SHE IS OVER EIGHTEEN YEARS OF
AGE AND IS CAPABLE OF MAKING THE AFFIDAVIT, AND THAT THE FACTS STATED IN
THE  AFFIDAVIT  ARE WITHIN THE AFFIANT'S PERSONAL KNOWLEDGE AND ARE TRUE
AND CORRECT;
  4. A STATEMENT BY THE AFFIANT(S) THAT EITHER  THE  AFFIANT(S)  OR  THE
ENTITIES  REPRESENTED BY THE AFFIANT(S) OWNS THE REAL PROPERTY DESCRIBED
IN THE DOCUMENT;
  5. A DESCRIPTION OF THE PROPERTY THAT INCLUDES:
  (A) THE ACCOUNT NUMBER OR PROPERTY IDENTIFICATION NUMBER USED  BY  THE
TAXING JURISDICTION;
  (B) THE LEGAL DESCRIPTION OF THE PROPERTY; AND
  (C) THE STREET ADDRESS OF THE PROPERTY, IF APPLICABLE;
  6. THE AMOUNT PAID FOR THE TRANSFER;
  7. THE TAX YEARS FOR THE AMOUNT PAID;
  8. THE TRANSFEREE'S NAME;
  9. THE TRANSFEREE'S STREET ADDRESS;
  10.  THE  FOLLOWING  STATEMENT:  "PURSUANT  TO SECTION 963 OF THE REAL
PROPERTY TAX LAW, I  HEREBY  AUTHORIZE  THE  ABOVE-NAMED  TRANSFEREE  OR
TRANSFEREE'S  AGENT  (THE  "TRANSFEREE"),  TO  PAY ALL TAXES, PENALTIES,
INTEREST, AND COLLECTION COSTS IMPOSED BY ANY AND ALL LOCAL TAXING UNITS
OR THEIR AGENTS ON THE REAL PROPERTY, DESCRIBED ABOVE, FOR THE TAX YEARS
LISTED   ABOVE.   I   FURTHER   AUTHORIZE    AND    DIRECT    THE    TAX
ASSESSOR-COLLECTOR(S)  FOR SAID TAXING UNITS TO ISSUE A TAX RECEIPT WITH
THE COLLECTOR'S SEAL OF OFFICE OR NOTARIZED SIGNATURE TO THE  TRANSFEREE
AND  TO  CERTIFY  THAT  THE  TAXES AND ANY PENALTIES AND INTEREST ON THE
SUBJECT PROPERTY AND COLLECTION COSTS HAVE BEEN PAID BY  THE  TRANSFEREE
ON  BEHALF OF THE OWNER, AND THE TAX LIEN(S) ON THE OWNER'S PROPERTY HAS
BEEN TRANSFERRED TO THE TRANSFEREE.";
  11. THE DATE THE DOCUMENT WAS SIGNED;
  12. THE SIGNATURE AND PRINTED NAME OF THE PROPERTY OWNER OR AUTHORIZED
REPRESENTATIVE;
  13. THE REPRESENTATIVE CAPACITY OR TITLE OF THE  AUTHORIZED  REPRESEN-
TATIVE, IF APPLICABLE; AND
  14. THE NOTARY PUBLIC'S SEAL AND SIGNATURE.
  S  964.  TAX  LIEN  TRANSFER CERTIFICATE. A CERTIFIED STATEMENT ISSUED
UNDER THIS SECTION BY THE TAXING JURISDICTION FOR THE PURPOSE OF  CREAT-
ING A TAX LIEN TRANSFER CERTIFICATE SHALL CONTAIN THE FOLLOWING INFORMA-
TION:
  1. THE NAME OF THE COUNTY WHERE THE PROPERTY IS LOCATED;
  2. THE DATE THE CERTIFICATION IS EXECUTED;
  3. A DESCRIPTION OF THE PROPERTY THAT INCLUDES:
  (A)  THE  ACCOUNT NUMBER OR PROPERTY IDENTIFICATION NUMBER USED BY THE
TAXING JURISDICTION;
  (B) THE LEGAL DESCRIPTION OF THE PROPERTY; AND
  (C) THE STREET ADDRESS OF THE PROPERTY, IF APPLICABLE;
  4. THE TAXING JURISDICTION TRANSFERRING A LIEN OR LIENS TO THE  TRANS-
FEREE;
  5. THE AMOUNT PAID FOR THE TRANSFER;
  6. THE TAX YEARS FOR THE AMOUNT PAID;
  7. THE PROPERTY OWNER'S NAME;
  8. THE TRANSFEREE'S NAME;
  9. THE TRANSFEREE'S STREET ADDRESS;

S. 2976                             4

  10.  THE  FOLLOWING  STATEMENT: "I, (INSERT AGENT FOR TAXING JURISDIC-
TION), CERTIFY THAT I HAVE RECEIVED AUTHORIZATION FROM THE OWNER OF  THE
SUBJECT  PROPERTY TO TRANSFER THE TAX LIEN TO THE ABOVE-NAMED TRANSFEREE
OR TRANSFEREE'S AGENT ("TRANSFEREE"), THAT TRANSFEREE HAS  MADE  PAYMENT
OF  THE  AMOUNT  LISTED ABOVE TO THE ABOVE-NAMED TAXING JURISDICTIONS ON
THE PROPERTY DESCRIBED ABOVE AS CONSIDERATION FOR A TRANSFER OF THE  TAX
LIEN(S),  AND  THAT  THE  TAX  LIENS HELD BY TAXING JURISDICTIONS ON THE
PROPERTY FOR THE TAX YEARS LISTED ABOVE ARE HEREBY TRANSFERRED TO TRANS-
FEREE IN ACCORDANCE WITH SECTION NINE HUNDRED SIXTY-THREE  OF  THE  REAL
PROPERTY  TAX LAW.  I HAVE ISSUED A RECEIPT TO TRANSFEREE IN CONJUNCTION
WITH THIS CERTIFICATION REFLECTING THE PAYMENT FOR THE TRANSFER  IN  THE
AMOUNT OF TAXES, PENALTIES, INTEREST, AND COLLECTION COSTS."
  11. THE NAME OF THE TAXING JURISDICTION;
  12. THE NAME OF THE TAXING UNIT(S);
  13. THE SIGNATURE OF THE AGENT FOR THE TAXING JURISDICTION; AND
  14. ONE OF THE FOLLOWING:
  (A) THE SEAL OF OFFICE OF THE TAXING JURISDICTION; OR
  (B)  A  NOTARY PUBLIC'S SEAL OF OFFICE AND A STATEMENT THAT THE CERTI-
FIED STATEMENT WAS SUBSCRIBED AND SWORN TO BEFORE A NOTARY PUBLIC; AND
  15. A STATEMENT THAT AFTER THE DOCUMENT  IS  RECORDED,  IT  IS  TO  BE
RETURNED TO THE TRANSFEREE.
  S  965.  PROPERTY  TAX  LIEN PAYMENT AGREEMENT. 1. A PROPERTY OWNER IS
PERMITTED TO ENTER INTO A PROPERTY TAX LIEN  PAYMENT  AGREEMENT  WITH  A
PROPERTY TAX PAYOR.
  2. SAID AGREEMENT SHALL CONTAIN TERMS AND CONDITIONS OF REPAYMENT.
  3. THE PROPERTY TAX PAYOR SHALL BE ALLOWED TO COLLECT FROM THE PROPER-
TY  OWNER  AN APPLICATION FEE NOT TO EXCEED TWO HUNDRED FIFTY DOLLARS, A
FEE FOR TITLE CHARGES NOT TO EXCEED FOUR HUNDRED DOLLARS, REASONABLE AND
CUSTOMARY ATTORNEY'S FEES  NOT  TO  EXCEED  ONE  THOUSAND  DOLLARS,  AND
REASONABLE  AND  CUSTOMARY  CLOSING  COSTS,  NOT  TO EXCEED FIVE HUNDRED
DOLLARS, ALL OF WHICH MAY, AT THE PROPERTY OWNER'S REQUEST  AND  WRITTEN
CONSENT,  BE  CONTAINED IN AND MADE A PART OF THE AMOUNTS OWED UNDER THE
PROPERTY TAX LIEN PAYMENT AGREEMENT  AND  THE  AMOUNTS  SECURED  BY  THE
TRANSFERRED TAX LIEN.
  4.  THE PROPERTY TAX PAYOR SHALL BE ALLOWED TO COLLECT INTEREST NOT TO
EXCEED 1.5% PER MONTH ON THE AMOUNT  OWED  ACCORDING  TO  THE  TAX  LIEN
PAYMENT AGREEMENT.
  5.  NOTHING  CONTAINED WITHIN THIS SECTION SHALL BE DEEMED TO CREATE A
MORTGAGE, NOTE OR OTHER INSTRUMENT GOVERNED BY ANY LAW, STATE OR  FEDER-
AL,  REGULATING  MORTGAGE AGREEMENTS, AND THE TAX LIEN PAYMENT AGREEMENT
SHALL BE DEEMED A CONTRACT FOR THE REPAYMENT  OF  MONIES  AND  SHALL  BE
GOVERNED  BY APPLICABLE STATE LAWS RELATING TO CONTRACTS, EXCEPT FOR THE
FORECLOSURE OF SAID AGREEMENT, WHICH IS SUBJECT TO THE RULES  AND  REGU-
LATIONS AS GOVERNING MORTGAGE FORECLOSURES AS DETAILED IN THE REAL PROP-
ERTY ACTIONS AND PROCEEDINGS LAW.
  6.  THE  PROPERTY  OWNER  OR A PRIOR RECORDED FIRST LIEN MORTGAGEE MAY
OBTAIN A RELEASE OF THE TRANSFERRED TAX LIEN BY PAYING THE PROPERTY  TAX
PAYOR ALL AMOUNTS DUE UNDER THE PROPERTY TAX LIEN PAYMENT AGREEMENT.
  S  966.  FORECLOSURE. 1. IF AT ANYTIME THE PROPERTY TAX PAYOR FILES TO
FORECLOSE UPON THE TERMS AND CONDITIONS OF THE PROPERTY  TAX  AGREEMENT,
THE PROPERTY TAX PAYOR SHALL FORECLOSE PURSUANT TO REAL PROPERTY ACTIONS
AND PROCEEDINGS LAW AS IF FORECLOSING A MORTGAGE.
  2.  THE PROPERTY TAX PAYOR IS ENTITLED TO RECOVER FORECLOSURE FEES FOR
THE FOLLOWING COSTS:
  (A) REASONABLE AND CUSTOMARY ATTORNEYS FEES  AS  SET  BY  A  COURT  OF
COMPETENT JURISDICTION; AND

S. 2976                             5

  (B)  REASONABLE AND CUSTOMARY TITLE CHARGES NOT TO EXCEED FOUR HUNDRED
DOLLARS; AND
  (C)  REASONABLE  AND  CUSTOMARY FEES FOR SERVICE OF PROCESS AND ADVER-
TISEMENT AS APPROVED BY A COURT OF COMPETENT JURISDICTION,  SO  LONG  AS
THE PROPERTY TAX PAYOR SUBMITS PROOF OF ACTUAL COSTS TO SAID COURT.
  3. A FORECLOSURE OF A TAX LIEN TRANSFERRED AS PROVIDED BY SECTION NINE
HUNDRED  SIXTY-TWO  OF  THIS TITLE MAY NOT BE INSTITUTED WITHIN ONE YEAR
FROM THE DATE ON WHICH THE LIEN IS RECORDED IN ALL COUNTIES IN WHICH THE
PROPERTY IS LOCATED, UNLESS THE CONTRACT BETWEEN THE OWNER OF THE  PROP-
ERTY AND THE TRANSFEREE PROVIDES OTHERWISE; PROVIDED THAT AFTER ONE YEAR
FROM  THE  DATE  ON  WHICH A TAX LIEN TRANSFERRED AS PROVIDED BY SECTION
NINE HUNDRED SIXTY-TWO OF THIS TITLE IS  RECORDED  IN  ALL  COUNTIES  IN
WHICH  THE PROPERTY IS LOCATED, THE TRANSFEREE OF THE LIEN MAY FORECLOSE
THE LIEN IN THE MANNER PROVIDED BY SUBDIVISION ONE OF THIS SECTION.
  4. NOTHING IN THIS SECTION SHALL BE DEEMED TO AFFECT THE RIGHTS  OF  A
TAXING  JURISDICTION  UNDER  ARTICLE ELEVEN OF THIS CHAPTER OR AFFECT OR
EXTEND THE REDEMPTION PERIOD, SUBJECT TO SECTION NINE HUNDRED SIXTY-SEV-
EN OF THIS TITLE.
  S 967. REDEMPTION. 1. IF A PROPERTY TAX PAYOR FORECLOSES ON A TAX LIEN
TRANSFERRED AS PROVIDED BY SECTION NINE HUNDRED SIXTY-TWO OF THIS TITLE,
BEGINNING ON THE DATE THE REFEREE'S DEED IS RECORDED, THE  PERSON  WHOSE
PROPERTY  IS  SOLD AS PROVIDED BY SECTION NINE HUNDRED SIXTY-SIX OF THIS
TITLE OR THE MORTGAGE SERVICER OF A PRIOR RECORDED FIRST  MORTGAGE  LIEN
AGAINST  THE PROPERTY IS ENTITLED TO REDEEM THE FORECLOSED PROPERTY FROM
THE PURCHASER OR THE PURCHASER'S SUCCESSOR BY PAYING  THE  PURCHASER  OR
HIS OR HER SUCCESSOR:
  (A)  ONE HUNDRED TWENTY PERCENT OF THE AMOUNT PAID BY THE PURCHASER AT
THE FORECLOSURE SALE; AND
  (B) THE AMOUNT REASONABLY SPENT BY THE PURCHASER  IN  CONNECTION  WITH
THE  UPKEEP  OF  THE  PROPERTY PLUS THE LEGAL JUDGMENT RATE OF RETURN ON
THAT AMOUNT. THE PROPERTY PURCHASER SHALL ONLY BE  ENTITLED  TO  RECOVER
THE  COSTS  CONTAINED  WITHIN  THIS  PARAGRAPH IF THE PURCHASER PROVIDES
WRITTEN PROOF OF ANY AND ALL COSTS INCURRED IN THE UPKEEP OF THE PROPER-
TY PRIOR TO REDEMPTION.
  2. THE RIGHT OF REDEMPTION PROVIDED BY THIS SECTION MAY  BE  EXERCISED
NOT LATER THAN THE ONE HUNDRED EIGHTIETH DAY AFTER THE DATE ON WHICH THE
REFEREE'S  DEED IS FILED IN THE OFFICE OF THE COUNTY CLERK OF THE COUNTY
WHERE THE PROPERTY IS SITUATED.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2976--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 4, 2011
                               ___________

Introduced by Sens. MAZIARZ, NOZZOLIO -- read twice and ordered printed,
  and  when printed to be committed to the Committee on Local Government
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

AN  ACT  to  amend  the  real  property tax law, in relation to tax lien
  transfers; and to repeal title 4 of article 9 of the real property tax
  law relating to acceptance of taxes from certain loan corporations

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Title  4  of  article  9  of the real property tax law is
REPEALED and a new title 4 is added to read as follows:
                                 TITLE 4
                    TAX LIEN TRANSFER AUTHORIZATIONS
SECTION 960. LEGISLATIVE INTENT.
        961. DEFINITIONS.
        962. TAX LIEN TRANSFER.
        963. TAX LIEN TRANSFER AUTHORIZATION.
        964. TAX LIEN TRANSFER CERTIFICATE.
        965. PROPERTY TAX LIEN PAYMENT AGREEMENT.
        966. FORECLOSURE.
        967. REDEMPTION.
        968. DISTRIBUTION OF TAX LIEN INFORMATION.
  S 960. LEGISLATIVE INTENT. THE LEGISLATURE FINDS  THAT  LOCAL  GOVERN-
MENTS ARE STRUGGLING UNDER THE WEIGHT OF INCREASED COSTS, REDUCED REVEN-
UES  AND  INCREASED  STRESSES ON THEIR RESPECTIVE MUNICIPAL BUDGETS. THE
LEGISLATURE ALSO FINDS THAT PROPERTY OWNERS  ARE  STRUGGLING  UNDER  THE
WEIGHT  OF  HIGH PROPERTY TAXES AND NEED SOME ASSISTANCE IN PAYING THOSE
TAXES IN ORDER TO PREVENT FORECLOSURE AND THE SALE OF THEIR PROPERTY TAX
LIENS TO THIRD PARTIES INVOLUNTARILY. THE LEGISLATURE FINDS THAT  IT  IS
IN  THE BEST INTERESTS OF THE RESIDENTS OF THE STATE OF NEW YORK AND THE
LOCAL GOVERNMENTS TO ALLOW PROPERTY OWNERS  TO  VOLUNTARILY  ENTER  INTO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08672-03-1
              

S. 2976--A                          2

AGREEMENTS  WITH  PRIVATE  ENTITIES  TO PROVIDE FOR THE PAYMENT OF THEIR
PROPERTY TAXES. CURRENTLY, PROPERTY OWNERS ARE  REQUIRED  TO  PAY  THEIR
TAXES  IN  FULL.  ALLOWING  PROPERTY OWNERS TO INCREASE THE PAYMENT TERM
WILL  HELP  ALLEVIATE THE PRESSURE ON THESE ALREADY FINANCIALLY STRESSED
RESIDENTS AND BUSINESS OWNERS. MOREOVER, LOCAL GOVERNMENTS WILL INCREASE
THEIR REVENUE COLLECTIONS AND SPEND LESS ON ACTIONS  TO  COLLECT  UNPAID
TAXES,  SUCH  AS  TAX  LIEN SALES AND TAX LIEN FORECLOSURES, BECAUSE THE
PROPERTY TAX PAYORS WILL PAY TAXES IN FULL, ALL AT ONCE.
  S 961. DEFINITIONS. AS USED IN THIS TITLE THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  1.  "PROPERTY  TAX  PAYOR"  MEANS  A PERSON WHO ADVANCES MONEY FOR THE
PAYMENT OF REAL PROPERTY TAXES DIRECTLY TO  A  TAXING  DISTRICT  AT  THE
REQUEST OF A PROPERTY OWNER. ALSO REFERRED TO AS A "TRANSFEREE."
  2.  "PROPERTY  TAX PAYMENT" MEANS THE AMOUNT OF MONEY ADVANCED FOR THE
PAYMENT OF PROPERTY TAXES PURSUANT  TO  A  PROPERTY  TAX  LIEN  TRANSFER
AUTHORIZATION AND PROPERTY TAX LIEN PAYMENT AGREEMENT.
  3.  "TAX  LIEN  TRANSFER  AUTHORIZATION" SHALL HAVE THE MEANING AS SET
FORTH IN SECTION NINE HUNDRED SIXTY-THREE OF THIS TITLE.
  4. "TAX LIEN TRANSFER CERTIFICATE" SHALL HAVE THE MEANING AS SET FORTH
IN SECTION NINE HUNDRED SIXTY-FOUR OF THIS TITLE.
  5. "PROPERTY TAX LIEN PAYMENT AGREEMENT" SHALL HAVE THE MEANING AS SET
FORTH IN SECTION NINE HUNDRED SIXTY-FIVE OF THIS TITLE.
  6. "REFEREE'S DEED" SHALL MEAN THE DEED ISSUED TO THE PURCHASER AT THE
FORECLOSURE SALE AT THE COURTHOUSE STEPS.
  7. "TRANSFEREE" MEANS A PERSON WHO ADVANCES MONEY FOR THE  PAYMENT  OF
REAL  PROPERTY  TAXES  DIRECTLY TO A TAXING DISTRICT AT THE REQUEST OF A
PROPERTY OWNER TO WHOM A PROPERTY TAX LIEN IS TRANSFERRED. ALSO REFERRED
TO AS A "PROPERTY TAX PAYOR."
  8. "TAXING DISTRICT" SHALL MEAN ANY LOCAL GOVERNMENT  ENTITY  (INCLUD-
ING,  FOR  EXAMPLE, ANY CITY, TOWN, VILLAGE, COUNTY, SCHOOL DISTRICT, OR
SPECIAL DISTRICT) THAT IMPOSES TAXES,  SPECIAL  AD  VALOREM  LEVIES,  OR
SPECIAL ASSESSMENTS ON REAL PROPERTY.
  S  962.  TAX LIEN TRANSFER. 1. A PROPERTY OWNER MAY EXECUTE A DOCUMENT
AS DETAILED HEREIN IN THE FORM OF A TAX LIEN TRANSFER AUTHORIZATION THAT
CONSENTS TO AND AUTHORIZES THE TRANSFER OF THE PROPERTY TAX LIENS ON THE
OWNER'S PROPERTY FROM A TAXING DISTRICT TO A PROPERTY TAX PAYOR  IF  THE
PROPERTY  TAX PAYOR PAYS THE PROPERTY TAX PAYMENT ON BEHALF OF THE PROP-
ERTY OWNER.
  2. UPON RECEIPT BY THE TAXING DISTRICT OF  THE  PROPERTY  OWNER'S  TAX
LIEN  TRANSFER AUTHORIZATION AND THE PROPERTY TAX PAYMENT FROM THE PROP-
ERTY TAX PAYOR, THE REAL PROPERTY TAX LIEN SHALL BE TRANSFERRED FROM THE
TAXING DISTRICT TO THE PROPERTY TAX PAYOR AS REFLECTED  IN  A  TAX  LIEN
TRANSFER  CERTIFICATE.  THE TAX LIEN TRANSFER CERTIFICATE AS DETAILED IN
SECTION NINE HUNDRED SIXTY-FOUR OF THIS TITLE  SHALL  CERTIFY  THAT  THE
TAXING  DISTRICT  RECEIVED WRITTEN AUTHORIZATION FROM THE PROPERTY OWNER
TO TRANSFER THE TAXES OWED; THAT THE PROPERTY TAX PAYOR PAID THE  PROPER
AMOUNT OWED BY THE  PROPERTY OWNER; AND THAT THE TAXING DISTRICT'S LIENS
ARE  TRANSFERRED  TO THE PROPERTY TAX PAYOR IN THE AMOUNTS LISTED IN THE
TAX LIEN TRANSFER CERTIFICATE.
  3.  THE TRANSFEREE, OR ITS HEIRS AND  ASSIGNS,  SHALL  HAVE  THE  SAME
RIGHTS,  REMEDIES, AND PRIORITIES AS THE TAXING DISTRICT, SUBJECT TO THE
TRANSFERRING TERMS AND CONDITIONS  OF  THE  PROPERTY  TAX  LIEN  PAYMENT
AGREEMENT  AND  THIS  SECTION. THE TAX LIEN TRANSFER CERTIFICATE MAY NOT
PERMIT THE PROPERTY TAX PAYOR TO ACT UPON THE TAX  LIEN  REPRESENTED  BY
THE  TAX LIEN TRANSFER CERTIFICATE EXCEPT FOR ACTIONS NECESSARY TO FORE-

S. 2976--A                          3

CLOSE THE LIEN OR TO COLLECT THE AMOUNTS OWED AS PROVIDED FOR IN THE TAX
LIEN TRANSFER CERTIFICATE AND THE PROPERTY TAX LIEN PAYMENT AGREEMENT.
  4.  THE  TAX LIEN TRANSFER CERTIFICATE SHALL BE RECORDED IN THE COUNTY
CLERK'S OFFICE WHERE THE PROPERTY IS  SITUATED,  AND  THE  PROPERTY  TAX
PAYOR SHALL PAY ANY STATUTORY FEE FOR SAID RECORDING.
  S  963.  TAX LIEN TRANSFER AUTHORIZATION.  1. A DOCUMENT BY A PROPERTY
OWNER AUTHORIZING THE TRANSFER OF TAX LIENS MUST CONTAIN  THE  FOLLOWING
INFORMATION AND BE IN SUBSTANTIALLY THE FOLLOWING FORM:
    TAX LIEN TRANSFER AUTHORIZATION PURSUANT TO REAL PROPERTY TAX LAW
                               SECTION 963
PROPERTY OWNER:
PARCEL IDENTIFICATION:
TAX YEARS:
AMOUNT DUE: (INCLUDE ALL TAXES, PENALTIES, INTEREST, COSTS AND FEES)
TAX ACCOUNT NUMBER:
I  (NAME  OF  OWNER(S)  OR OWNER'S AUTHORIZED REPRESENTATIVE) OWN(S) THE
REAL PROPERTY LOCATED IN THE COUNTY OF (CITY, VILLAGE OR TOWN), ("TAXING
DISTRICT") WITH THE STREET ADDRESS KNOWN AS, AND AS MORE FULLY DESCRIBED
BY ITS LEGAL DESCRIPTION AS: (INSERT STREET AND LEGAL ADDRESSES.)
PURSUANT TO SECTION 963 OF THE REAL PROPERTY TAX LAW, I HEREBY AUTHORIZE
THE TREASURER (TAX COLLECTOR, COMPTROLLER, REAL  PROPERTY  DIRECTOR)  TO
TRANSFER  THE  LIEN HELD ON THE PROPERTY LISTED ABOVE TO (NAME OF PERSON
OR ENTITY) ("TRANSFEREE"). I HEREBY AUTHORIZE THE ABOVE-NAMED TRANSFEREE
TO TENDER PAYMENT IN CONSIDERATION FOR THE TRANSFER OF THE TAX  LIEN  IN
AN  AMOUNT EQUAL TO ALL TAXES, PENALTIES, INTEREST, AND COLLECTION COSTS
IMPOSED BY THE TAXING DISTRICT ON THE REAL  PROPERTY,  DESCRIBED  ABOVE,
FOR  THE  TAX  YEARS LISTED HEREIN: (LIST TAX YEARS, TAX AMOUNTS AND TAX
CERTIFICATE NUMBER(S)).  I  FURTHER  AUTHORIZE  AND  DIRECT  THE  TAXING
DISTRICT  TO  ISSUE A TAX RECEIPT WITH THE TAXING DISTRICT'S SEAL TO THE
TRANSFEREE AND TO CERTIFY 1) RECEIPT OF PAYMENT FROM THE  TRANSFEREE  ON
BEHALF  OF  THE  OWNER;  AND  2) TRANSFER OF THE TAX LIEN ON THE OWNER'S
PROPERTY TO THE TRANSFEREE.
_______________________________ (OWNER(S) OR AUTHORIZED  REPRESENTATIVE)
SUBSCRIBED  AND  SWORN TO BEFORE ME ON THIS, THE ____ DAY OF __________,
20____ BY (INSERT NAME OF SIGNER.)
__________________________________
NOTARY PUBLIC, STATE OF NEW YORK
DATE SIGNED (INSERT NOTARY'S SEAL)
  2. IF THE PROPERTY OWNER AUTHORIZES THE TRANSFER OF LIENS FOR MULTIPLE
YEARS OR FOR MULTIPLE PROPERTY TAX LIENS ASSESSED  BY  THE  SAME  TAXING
DISTRICT,  THE  AUTHORIZATION  FOR ALL OF THE LIENS MAY BE COMBINED INTO
ONE FORM.
  S 964. TAX LIEN TRANSFER CERTIFICATE.  1. A CERTIFIED STATEMENT ISSUED
UNDER THIS SECTION BY A TAXING DISTRICT FOR THE PURPOSE OF MEMORIALIZING
THE TRANSFER OF A TAX LIEN SHALL CONTAIN THE FOLLOWING  INFORMATION  AND
SHALL BE IN SUBSTANTIALLY THE FOLLOWING FORM:
TAX  LIEN TRANSFER CERTIFICATE PURSUANT TO SECTION 964 OF THE REAL PROP-
ERTY TAX LAW
PROPERTY  DESCRIPTION:  (INSERT  PHYSICAL  ADDRESS  AS  WELL  AS   LEGAL
DESCRIPTION)
TAX ACCOUNT NUMBER:
TAX YEARS DUE: (INSERT YEAR(S) OF TAX LIENS TRANSFERRED)
TAXING DISTRICT(S):
AMOUNTS  PAID:  (AMOUNT  OF  TAXES  DUE  AND ANY TAX LIEN CERTIFICATE(S)
TRANSFERRED)
TAX CERTIFICATE NUMBER: TRANSFEREE: (INSERT NAME OF TRANSFEREE)

S. 2976--A                          4

I, (INSERT NAME), (TITLE, E.G., TREASURER, TAX  COLLECTOR,  COMPTROLLER,
REAL  PROPERTY  DIRECTOR)  FOR  (TAXING DISTRICT(S), E.G., COUNTY, CITY,
VILLAGE, TOWN), CERTIFY THAT I  HAVE  RECEIVED  AUTHORIZATION  FROM  THE
OWNER  OF  THE  PROPERTY  OR PROPERTIES LISTED ABOVE (OR ON THE ATTACHED
EXHIBIT)  TO  TRANSFER  THE  TAX LIEN(S) TO THE TRANSFEREE LISTED ABOVE;
THAT TRANSFEREE HAS MADE PAYMENT OF THE AMOUNTS PAID TO THE NAMED TAXING
DISTRICTS ON THE PROPERTY AS CONSIDERATION FOR A  TRANSFER  OF  THE  TAX
LIEN(S),  AND THAT THE TAX LIEN(S) HELD BY TAXING DISTRICTS ON THE PROP-
ERTY FOR THE TAX YEARS LISTED ABOVE ARE HEREBY TRANSFERRED TO TRANSFEREE
IN ACCORDANCE WITH REAL PROPERTY TAX LAW SECTION 964. I  HAVE  ISSUED  A
RECEIPT  TO TRANSFEREE IN CONJUNCTION WITH THIS CERTIFICATION REFLECTING
THE PAYMENT FOR THE TRANSFER IN THE AMOUNT OF TAXES,  PENALTIES,  INTER-
EST, AND COLLECTION COSTS DUE. THE TAX LIEN IS TRANSFERRED TO THE TRANS-
FEREE EFFECTIVE THIS DATE.
__________________________________________  (SIGNATURE OF TREASURER (TAX
COLLECTOR, COMPTROLLER, REAL PROPERTY DIRECTOR)
SEAL OF TAXING DISTRICT DATE:_____________________________________
(IF NO SEAL OF OFFICE CAN BE PROVIDED, SIGNATURE SHOULD BE NOTARIZED.)
  2. IF A PROPERTY OWNER AUTHORIZES THE TRANSFER OF PROPERTY  TAX  LIENS
FOR  MULTIPLE  YEARS  OR FOR MULTIPLE LIENS ASSESSED OR COLLECTED BY THE
SAME TAXING DISTRICT, THE STATEMENT CERTIFYING THE TRANSFER OF THE LIENS
SHALL BE COMBINED INTO ONE FORM.
  3. A TAXING DISTRICT MAY CHARGE A REASONABLE FEE NOT TO EXCEED  $25.00
FOR EACH STATEMENT CERTIFYING THE TRANSFER OF THE TAX LIENS ON PROPERTY.
  S  965.  PROPERTY  TAX LIEN PAYMENT AGREEMENT. 1. A PROPERTY OWNER MAY
ENTER INTO A PROPERTY TAX LIEN PAYMENT AGREEMENT  WITH  A  PROPERTY  TAX
PAYOR.
  2.  SAID  AGREEMENT SHALL SET FORTH SUCH TERMS AND CONDITIONS TO WHICH
THE TRANSFEREE AND THE PROPERTY OWNER MAY AGREE REGARDING THE  REPAYMENT
OF THE TAX LIEN TO THE TRANSFEREE.
  3.  ANY FEES TO EFFECT OR SERVICE A TRANSFERRED LIEN MAY, AT THE PROP-
ERTY  OWNER'S  REQUEST  AND  WRITTEN CONSENT, BE CONTAINED IN AND MADE A
PART OF THE AMOUNTS OWED UNDER THE PROPERTY TAX LIEN  PAYMENT  AGREEMENT
AND  THE  AMOUNTS  SECURED  BY THE TRANSFERRED TAX LIEN.  IF THE SUBJECT
PROPERTY IS OWNED AND OCCUPIED BY THE  PROPERTY  OWNER,  THE  ADDITIONAL
FEES  CONTRACTED FOR IN THE PROPERTY TAX LIEN PAYMENT AGREEMENT SHALL BE
LIMITED AS FOLLOWS: AN APPLICATION FEE NOT TO EXCEED TWO  HUNDRED  FIFTY
DOLLARS,  A  FEE  FOR  TITLE CHARGES NOT TO EXCEED FOUR HUNDRED DOLLARS,
REASONABLE AND CUSTOMARY ATTORNEY'S FEES  NOT  TO  EXCEED  ONE  THOUSAND
DOLLARS,  AND  REASONABLE AND CUSTOMARY CLOSING COSTS NOT TO EXCEED FIVE
HUNDRED DOLLARS. THE PROPERTY TAX LIEN  PAYMENT  AGREEMENT  MAY  PROVIDE
THAT  IN  THE  EVENT  THAT  THE  PROPERTY  OWNER  INITIATES A BANKRUPTCY
PROCEEDING, THE PROPERTY TAX PAYOR SHALL  BE  ENTITLED  TO  RECOVER  ALL
FEES, INTEREST AND COSTS INCURRED IN PROTECTING ITS RIGHTS IN SAID BANK-
RUPTCY.
  4.  THE PROPERTY TAX PAYOR MAY COLLECT INTEREST NOT TO EXCEED 1.5% PER
MONTH ON THE AMOUNT OWED ACCORDING TO THE TAX  LIEN  PAYMENT  AGREEMENT.
THE  AMOUNT OWED MAY INCLUDE TAXES, PENALTIES, INTEREST, FEES, AND COSTS
AS AGREED TO BETWEEN THE PROPERTY OWNER AND THE PROPERTY TAX PAYOR,  BUT
MAY  NOT  INCLUDE  FUNDS  ADVANCED  TO  THE PROPERTY OWNER FOR ANY OTHER
PURPOSE. IF THE PROPERTY OWNER OWNS AND OCCUPIES THE SUBJECT PROPERTY AS
HIS PRIMARY RESIDENCE, THE AGREEMENT MAY NOT CONTAIN A PENALTY FOR EARLY
PAYMENT OF THE AMOUNTS OWED UNDER THE AGREEMENT.
  5. NOTHING CONTAINED WITHIN THIS SECTION SHALL BE DEEMED TO  CREATE  A
MORTGAGE,  NOTE OR OTHER INSTRUMENT GOVERNED BY ANY LAW, STATE OR FEDER-
AL, REGULATING MORTGAGE AGREEMENTS, AND THE TAX LIEN  PAYMENT  AGREEMENT

S. 2976--A                          5

SHALL BE DEEMED A CONTRACT FOR THE PAYMENT OF TAXES AND ASSOCIATED OBLI-
GATIONS  AND  SHALL  BE GOVERNED BY THIS TITLE AND GENERAL PRINCIPLES OF
CONTRACT LAW, EXCEPT FOR THE FORECLOSURE OF  SAID  AGREEMENT,  WHICH  IS
SUBJECT  TO THE RULES AND REGULATIONS AS GOVERNING MORTGAGE FORECLOSURES
AS DETAILED IN THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW.
  S 966. FORECLOSURE. 1. IF AT ANYTIME THE PROPERTY TAX PAYOR  FILES  TO
FORECLOSE  UPON  THE TERMS AND CONDITIONS OF THE PROPERTY TAX AGREEMENT,
THE PROPERTY TAX PAYOR SHALL FORECLOSE PURSUANT TO REAL PROPERTY ACTIONS
AND PROCEEDINGS LAW AS IF FORECLOSING A MORTGAGE.
  2.   THE PROPERTY TAX PAYOR IS  ENTITLED  TO  RECOVER  REASONABLE  AND
CUSTOMARY COSTS AND FEES IN A FORECLOSURE PROCEEDING. THE COSTS AND FEES
MUST  BE APPROVED BY A COURT OF COMPETENT JURISDICTION, AND THE PROPERTY
TAX PAYOR MAY BE BE REQUIRED TO SUBMIT PROOF OF THEIR INCURRENCE TO  THE
COURT. RECOVERABLE FEES AND COSTS MAY INCLUDE:
  A. ATTORNEY'S FEES;
  B.  CHARGES  TO  VERIFY  OWNERSHIP OF THE PROPERTY, NOT TO EXCEED FOUR
HUNDRED DOLLARS;
  C. FEES FOR RECORDING NOTICES AND DOCUMENTS RELATED  TO  THE  FORECLO-
SURE;
  D.  COSTS OF PROVIDING NOTICE, INCLUDING SERVICE OF PROCESS AND ADVER-
TISEMENT; AND
  E. OTHER FEES AND COSTS LEGALLY REQUIRED TO FORECLOSE.
  3. A FORECLOSURE OF A TAX LIEN TRANSFERRED AS PROVIDED BY SECTION NINE
HUNDRED SIXTY-TWO OF THIS TITLE MAY NOT BE INSTITUTED  WITHIN  ONE  YEAR
FROM THE DATE ON WHICH THE LIEN IS RECORDED IN ALL COUNTIES IN WHICH THE
PROPERTY  IS  LOCATED, UNLESS THE TAX LIEN PAYMENT AGREEMENT BETWEEN THE
OWNER OF THE PROPERTY AND THE TRANSFEREE PROVIDES OTHERWISE.  A FORECLO-
SURE PROCEEDING TO COLLECT THE AMOUNT OWED PURSUANT TO A TRANSFERRED TAX
LIEN OR A PROPERTY TAX LIEN PAYMENT AGREEMENT MAY NOT  BE  INITIATED  IF
THE TAXING DISTRICT WOULD BE BARRED FROM INSTITUTING A PROCEEDING DUE TO
THE STATUTE OF LIMITATIONS.
  4.  NOTHING  IN THIS SECTION SHALL BE DEEMED TO AFFECT THE RIGHTS OF A
TAXING DISTRICT UNDER ARTICLE ELEVEN OF THIS CHAPTER OR AFFECT OR EXTEND
THE REDEMPTION PERIOD, SUBJECT TO SECTION NINE  HUNDRED  SIXTY-SEVEN  OF
THIS TITLE.
  S  967.  REDEMPTION. 1.   THE PROPERTY OWNER OR A PRIOR RECORDED FIRST
LIEN MORTGAGEE MAY OBTAIN A RELEASE  OF  THE  TRANSFERRED  TAX  LIEN  BY
PAYING  THE  PROPERTY  TAX  PAYOR ALL AMOUNTS DUE UNDER THE PROPERTY TAX
LIEN PAYMENT AGREEMENT AT ANY TIME AFTER THE PROPERTY TAX PAYOR FILES  A
LIS  PENDENS  IN CONNECTION WITH A FORECLOSURE PROCEEDING OF THE SUBJECT
PROPERTY.  IF A PROPERTY TAX PAYOR FORECLOSES ON A TAX LIEN  TRANSFERRED
AS  PROVIDED BY SECTION NINE HUNDRED SIXTY-TWO OF THIS TITLE, THE PERSON
WHOSE PROPERTY IS SOLD AS PROVIDED BY SECTION NINE HUNDRED SIXTY-SIX  OF
THIS  TITLE  OR THE MORTGAGE SERVICER OF A PRIOR RECORDED FIRST MORTGAGE
LIEN MORTGAGEE IS ENTITLED TO REDEEM THE FORECLOSED  PROPERTY  FROM  THE
OWNER  AT  THE  TIME  OF  REDEMPTION  BY PAYING THE OWNER AT THE TIME OF
REDEMPTION:
  (A) ONE HUNDRED TWENTY PERCENT OF THE AMOUNT PAID BY THE PURCHASER  AT
THE FORECLOSURE SALE; AND
  (B)  THE  AMOUNT  REASONABLY SPENT BY THE PURCHASER IN CONNECTION WITH
THE MAINTENANCE AND SAFE KEEPING OF THE PROPERTY PLUS THE LEGAL JUDGMENT
RATE OF RETURN ON THAT AMOUNT. THE  PROPERTY  PURCHASER  SHALL  ONLY  BE
ENTITLED  TO  RECOVER  THE  COSTS CONTAINED WITHIN THIS PARAGRAPH IF THE
PURCHASER PROVIDES WRITTEN PROOF OF ANY AND ALL COSTS  INCURRED  IN  THE
UPKEEP OF THE PROPERTY PRIOR TO REDEMPTION.

S. 2976--A                          6

  2.  THE  RIGHT OF REDEMPTION PROVIDED BY THIS SECTION MAY BE EXERCISED
NOT LATER THAN THE ONE HUNDRED EIGHTIETH DAY AFTER THE DATE ON WHICH THE
REFEREE'S DEED IS FILED IN THE OFFICE OF THE COUNTY CLERK OF THE  COUNTY
WHERE THE PROPERTY IS SITUATED.
  S  968.  DISTRIBUTION OF TAX LIEN INFORMATION. 1. TWICE ANNUALLY, EACH
TAXING DISTRICT SHALL PROVIDE THE STATE COMPTROLLER A REPORT, IN SPREAD-
SHEET OR  COMMA  DELIMITED  ELECTRONIC  FORMAT,  OF  ALL  REAL  PROPERTY
ACCOUNTS  IN  SAID  TAXING DISTRICT THAT HAVE UNPAID PROPERTY TAXES. THE
REPORTS SHALL BE DUE ON OR AROUND JANUARY FIRST AND OCTOBER FIRST.   THE
JANUARY  REPORT  SHALL  CONTAIN  A LISTING OF ALL TAX ACCOUNTS THAT SHOW
REAL PROPERTY TAXES DUE. THE OCTOBER REPORT SHALL CONTAIN A  LISTING  OF
ALL  TAX  ACCOUNTS  THAT  SHOW  REAL PROPERTY TAXES DELINQUENT. FOR EACH
ACCOUNT, SAID LISTINGS SHALL INCLUDE THE DATA FROM THE TAX ROLL  OF  THE
TAXING  DISTRICT, INCLUDING BUT NOT LIMITED TO THE PROPERTY OWNER'S NAME
AND ADDRESS, THE PROPERTY ADDRESS, THE PROPERTY PARCEL  IDENTIFIER,  THE
PROPERTY  TYPE  CLASSIFICATION CODE (FOR EXAMPLE, AGRICULTURAL, RESIDEN-
TIAL, COMMERCIAL, OR VACANT LAND), THE ASSESSED VALUE OF THE REAL  PROP-
ERTY  AND THE IMPROVEMENTS THEREON, THE EXEMPTIONS, IF ANY, ON THE PROP-
ERTY, AND THE YEAR(S) AND AMOUNT DUE OR DELINQUENT.
  2. THE STATE COMPTROLLER SHALL CONSOLIDATE THE REPORTS FROM ALL TAXING
DISTRICTS. THE STATE COMPTROLLER  SHALL  MAKE  THE  CONSOLIDATED  REPORT
AVAILABLE  TO ANY PERSON UPON REQUEST, IN SPREADSHEET OR COMMA DELIMITED
ELECTRONIC FORMAT, AT A REASONABLE PRICE  NOT  TO  EXCEED  FIVE  HUNDRED
DOLLARS.
  3.  THE  STATE  COMPTROLLER  SHALL  PROMULGATE RULES TO IMPLEMENT THIS
SECTION.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2976--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 4, 2011
                               ___________

Introduced by Sens. MAZIARZ, NOZZOLIO -- read twice and ordered printed,
  and  when printed to be committed to the Committee on Local Government
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and  recommitted  to  said  committee  -- reported favorably from said
  committee and committed to  the  Committee  on  Finance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  real  property tax law, in relation to tax lien
  transfers; and to repeal title 4 of article 9 of such law relating  to
  acceptance of taxes from certain loan corporations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Title 4 of article 9  of  the  real  property  tax  law  is
REPEALED and a new title 4 is added to read as follows:
                                 TITLE 4
                    TAX LIEN TRANSFER AUTHORIZATIONS
SECTION 960. LEGISLATIVE INTENT.
        961. DEFINITIONS.
        962. TAX LIEN TRANSFER.
        963. TAX LIEN TRANSFER AUTHORIZATION.
        964. TAX LIEN TRANSFER CERTIFICATE.
        965. PROPERTY TAX LIEN PAYMENT AGREEMENT.
        966. FORECLOSURE.
        967. RECONVEYANCE.
        968. DISTRIBUTION OF TAX LIEN INFORMATION.
  S  960.  LEGISLATIVE  INTENT. THE LEGISLATURE FINDS THAT LOCAL GOVERN-
MENTS ARE STRUGGLING UNDER THE WEIGHT OF INCREASED COSTS, REDUCED REVEN-
UES AND INCREASED STRESSES ON THEIR RESPECTIVE  MUNICIPAL  BUDGETS.  THE
LEGISLATURE  ALSO  FINDS  THAT  PROPERTY OWNERS ARE STRUGGLING UNDER THE
WEIGHT OF HIGH PROPERTY TAXES AND NEED SOME ASSISTANCE IN  PAYING  THOSE
TAXES IN ORDER TO PREVENT FORECLOSURE AND THE SALE OF THEIR PROPERTY TAX

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08672-05-1
              

S. 2976--B                          2

LIENS  TO  THIRD PARTIES INVOLUNTARILY. THE LEGISLATURE FINDS THAT IT IS
IN THE BEST INTERESTS OF THE RESIDENTS OF THE STATE OF NEW YORK AND  THE
LOCAL  GOVERNMENTS  TO  ALLOW  PROPERTY OWNERS TO VOLUNTARILY ENTER INTO
AGREEMENTS  WITH  PRIVATE  ENTITIES  TO PROVIDE FOR THE PAYMENT OF THEIR
PROPERTY TAXES. CURRENTLY, PROPERTY OWNERS ARE  REQUIRED  TO  PAY  THEIR
TAXES  IN  FULL.  ALLOWING  PROPERTY OWNERS TO INCREASE THE PAYMENT TERM
WILL HELP ALLEVIATE THE PRESSURE ON THESE ALREADY  FINANCIALLY  STRESSED
RESIDENTS AND BUSINESS OWNERS. MOREOVER, LOCAL GOVERNMENTS WILL INCREASE
THEIR  REVENUE  COLLECTIONS  AND SPEND LESS ON ACTIONS TO COLLECT UNPAID
TAXES, SUCH AS TAX LIEN SALES AND TAX  LIEN  FORECLOSURES,  BECAUSE  THE
PROPERTY TAX PAYORS WILL PAY TAXES IN FULL, ALL AT ONCE.
  S  961.  DEFINITIONS.  AS USED IN THIS TITLE THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  1. "PROPERTY TAX PAYOR" MEANS A PERSON  WHO  ADVANCES  MONEY  FOR  THE
PAYMENT  OF  REAL  PROPERTY  TAXES  DIRECTLY TO A TAXING DISTRICT AT THE
REQUEST OF A PROPERTY OWNER. ALSO REFERRED TO AS A "TRANSFEREE."
  2. "PROPERTY TAX PAYMENT" MEANS THE AMOUNT OF MONEY ADVANCED  FOR  THE
PAYMENT  OF  PROPERTY  TAXES  PURSUANT  TO  A PROPERTY TAX LIEN TRANSFER
AUTHORIZATION AND PROPERTY TAX LIEN PAYMENT AGREEMENT.
  3. "TAX LIEN TRANSFER AUTHORIZATION" SHALL HAVE  THE  MEANING  AS  SET
FORTH IN SECTION NINE HUNDRED SIXTY-THREE OF THIS TITLE.
  4. "TAX LIEN TRANSFER CERTIFICATE" SHALL HAVE THE MEANING AS SET FORTH
IN SECTION NINE HUNDRED SIXTY-FOUR OF THIS TITLE.
  5. "PROPERTY TAX LIEN PAYMENT AGREEMENT" SHALL HAVE THE MEANING AS SET
FORTH IN SECTION NINE HUNDRED SIXTY-FIVE OF THIS TITLE.
  6. "REFEREE'S DEED" SHALL MEAN THE DEED ISSUED TO THE PURCHASER AT THE
FORECLOSURE SALE AT THE COURTHOUSE STEPS.
  7.  "TRANSFEREE"  MEANS A PERSON WHO ADVANCES MONEY FOR THE PAYMENT OF
REAL PROPERTY TAXES DIRECTLY TO A TAXING DISTRICT AT THE  REQUEST  OF  A
PROPERTY OWNER TO WHOM A PROPERTY TAX LIEN IS TRANSFERRED. ALSO REFERRED
TO AS A "PROPERTY TAX PAYOR."
  8.  "TAXING  DISTRICT" SHALL MEAN ANY LOCAL GOVERNMENT ENTITY (INCLUD-
ING, FOR EXAMPLE, ANY CITY, TOWN, VILLAGE, COUNTY, SCHOOL  DISTRICT,  OR
SPECIAL  DISTRICT)  THAT  IMPOSES  TAXES,  SPECIAL AD VALOREM LEVIES, OR
SPECIAL ASSESSMENTS ON REAL PROPERTY.
  S 962. TAX LIEN TRANSFER. 1. A PROPERTY OWNER MAY EXECUTE  A  DOCUMENT
AS DETAILED HEREIN IN THE FORM OF A TAX LIEN TRANSFER AUTHORIZATION THAT
CONSENTS TO AND AUTHORIZES THE TRANSFER OF THE PROPERTY TAX LIENS ON THE
OWNER'S  PROPERTY  FROM A TAXING DISTRICT TO A PROPERTY TAX PAYOR IF THE
PROPERTY TAX PAYOR PAYS THE PROPERTY TAX PAYMENT ON BEHALF OF THE  PROP-
ERTY OWNER.
  2.  UPON  RECEIPT  BY  THE TAXING DISTRICT OF THE PROPERTY OWNER'S TAX
LIEN TRANSFER AUTHORIZATION AND THE PROPERTY TAX PAYMENT FROM THE  PROP-
ERTY TAX PAYOR, THE REAL PROPERTY TAX LIEN SHALL BE TRANSFERRED FROM THE
TAXING  DISTRICT  TO  THE  PROPERTY TAX PAYOR AS REFLECTED IN A TAX LIEN
TRANSFER CERTIFICATE. THE TAX LIEN TRANSFER CERTIFICATE AS  DETAILED  IN
SECTION  NINE  HUNDRED  SIXTY-FOUR  OF THIS TITLE SHALL CERTIFY THAT THE
TAXING DISTRICT RECEIVED WRITTEN AUTHORIZATION FROM THE  PROPERTY  OWNER
TO  TRANSFER THE TAXES OWED; THAT THE PROPERTY TAX PAYOR PAID THE PROPER
AMOUNT OWED BY THE  PROPERTY OWNER; AND THAT THE TAXING DISTRICT'S LIENS
ARE TRANSFERRED TO THE PROPERTY TAX PAYOR IN THE AMOUNTS LISTED  IN  THE
TAX LIEN TRANSFER CERTIFICATE.
  3.    THE  TRANSFEREE,  OR  ITS HEIRS AND ASSIGNS, SHALL HAVE THE SAME
RIGHTS, REMEDIES, AND PRIORITIES AS THE TAXING DISTRICT, SUBJECT TO  THE
TRANSFERRING  TERMS  AND  CONDITIONS  OF  THE  PROPERTY TAX LIEN PAYMENT
AGREEMENT AND THIS SECTION. THE TAX LIEN TRANSFER  CERTIFICATE  MAY  NOT

S. 2976--B                          3

PERMIT  THE  PROPERTY  TAX PAYOR TO ACT UPON THE TAX LIEN REPRESENTED BY
THE TAX LIEN TRANSFER CERTIFICATE EXCEPT FOR ACTIONS NECESSARY TO  FORE-
CLOSE THE LIEN OR TO COLLECT THE AMOUNTS OWED AS PROVIDED FOR IN THE TAX
LIEN TRANSFER CERTIFICATE AND THE PROPERTY TAX LIEN PAYMENT AGREEMENT.
  4.  THE  TAX LIEN TRANSFER CERTIFICATE SHALL BE RECORDED IN THE COUNTY
CLERK'S OFFICE WHERE THE PROPERTY IS  SITUATED,  AND  THE  PROPERTY  TAX
PAYOR SHALL PAY ANY STATUTORY FEE FOR SAID RECORDING.
  S  963.  TAX LIEN TRANSFER AUTHORIZATION.  1. A DOCUMENT BY A PROPERTY
OWNER AUTHORIZING THE TRANSFER OF TAX LIENS MUST CONTAIN  THE  FOLLOWING
INFORMATION AND BE IN SUBSTANTIALLY THE FOLLOWING FORM:
    TAX LIEN TRANSFER AUTHORIZATION PURSUANT TO REAL PROPERTY TAX LAW
                               SECTION 963
PROPERTY OWNER:
PARCEL IDENTIFICATION:
TAX YEARS:
AMOUNT DUE: (INCLUDE ALL TAXES, PENALTIES, INTEREST, COSTS AND FEES)
TAX ACCOUNT NUMBER:
I  (NAME  OF  OWNER(S)  OR OWNER'S AUTHORIZED REPRESENTATIVE) OWN(S) THE
REAL PROPERTY LOCATED IN THE COUNTY OF (CITY, VILLAGE OR TOWN), ("TAXING
DISTRICT") WITH THE STREET ADDRESS KNOWN AS, AND AS MORE FULLY DESCRIBED
BY ITS LEGAL DESCRIPTION AS: (INSERT STREET AND LEGAL ADDRESSES.)
PURSUANT TO SECTION 963 OF THE REAL PROPERTY TAX LAW, I HEREBY AUTHORIZE
THE TREASURER (TAX COLLECTOR, COMPTROLLER, REAL  PROPERTY  DIRECTOR)  TO
TRANSFER  THE  LIEN HELD ON THE PROPERTY LISTED ABOVE TO (NAME OF PERSON
OR ENTITY) ("TRANSFEREE"). I HEREBY AUTHORIZE THE ABOVE-NAMED TRANSFEREE
TO TENDER PAYMENT IN CONSIDERATION FOR THE TRANSFER OF THE TAX  LIEN  IN
AN  AMOUNT EQUAL TO ALL TAXES, PENALTIES, INTEREST, AND COLLECTION COSTS
IMPOSED BY THE TAXING DISTRICT ON THE REAL  PROPERTY,  DESCRIBED  ABOVE,
FOR  THE  TAX  YEARS LISTED HEREIN: (LIST TAX YEARS, TAX AMOUNTS AND TAX
CERTIFICATE NUMBER(S)).  I  FURTHER  AUTHORIZE  AND  DIRECT  THE  TAXING
DISTRICT  TO  ISSUE A TAX RECEIPT WITH THE TAXING DISTRICT'S SEAL TO THE
TRANSFEREE AND TO CERTIFY 1) RECEIPT OF PAYMENT FROM THE  TRANSFEREE  ON
BEHALF  OF  THE  OWNER;  AND  2) TRANSFER OF THE TAX LIEN ON THE OWNER'S
PROPERTY TO THE TRANSFEREE.
_______________________________ (OWNER(S) OR AUTHORIZED  REPRESENTATIVE)
SUBSCRIBED  AND  SWORN TO BEFORE ME ON THIS, THE ____ DAY OF __________,
20____ BY (INSERT NAME OF SIGNER.)
__________________________________
NOTARY PUBLIC, STATE OF NEW YORK
DATE SIGNED (INSERT NOTARY'S SEAL)
  2. IF THE PROPERTY OWNER AUTHORIZES THE TRANSFER OF LIENS FOR MULTIPLE
YEARS OR FOR MULTIPLE PROPERTY TAX LIENS ASSESSED  BY  THE  SAME  TAXING
DISTRICT,  THE  AUTHORIZATION  FOR ALL OF THE LIENS MAY BE COMBINED INTO
ONE FORM.
  S 964. TAX LIEN TRANSFER CERTIFICATE.  1. A CERTIFIED STATEMENT ISSUED
UNDER THIS SECTION BY A TAXING DISTRICT FOR THE PURPOSE OF MEMORIALIZING
THE TRANSFER OF A TAX LIEN SHALL CONTAIN THE FOLLOWING  INFORMATION  AND
SHALL BE IN SUBSTANTIALLY THE FOLLOWING FORM:
TAX  LIEN TRANSFER CERTIFICATE PURSUANT TO SECTION 964 OF THE REAL PROP-
ERTY TAX LAW
PROPERTY  DESCRIPTION:  (INSERT  PHYSICAL  ADDRESS  AS  WELL  AS   LEGAL
DESCRIPTION)
TAX ACCOUNT NUMBER:
TAX YEARS DUE: (INSERT YEAR(S) OF TAX LIENS TRANSFERRED)
TAXING DISTRICT(S):

S. 2976--B                          4

AMOUNTS  PAID:  (AMOUNT  OF  TAXES  DUE  AND ANY TAX LIEN CERTIFICATE(S)
TRANSFERRED)
TAX CERTIFICATE NUMBER: TRANSFEREE: (INSERT NAME OF TRANSFEREE)
I,  (INSERT  NAME), (TITLE, E.G., TREASURER, TAX COLLECTOR, COMPTROLLER,
REAL PROPERTY DIRECTOR) FOR (TAXING  DISTRICT(S),  E.G.,  COUNTY,  CITY,
VILLAGE,  TOWN),  CERTIFY  THAT  I  HAVE RECEIVED AUTHORIZATION FROM THE
OWNER OF THE PROPERTY OR PROPERTIES LISTED ABOVE  (OR  ON  THE  ATTACHED
EXHIBIT)  TO  TRANSFER  THE  TAX LIEN(S) TO THE TRANSFEREE LISTED ABOVE;
THAT TRANSFEREE HAS MADE PAYMENT OF THE AMOUNTS PAID TO THE NAMED TAXING
DISTRICTS ON THE PROPERTY AS CONSIDERATION FOR A  TRANSFER  OF  THE  TAX
LIEN(S),  AND THAT THE TAX LIEN(S) HELD BY TAXING DISTRICTS ON THE PROP-
ERTY FOR THE TAX YEARS LISTED ABOVE ARE HEREBY TRANSFERRED TO TRANSFEREE
IN ACCORDANCE WITH REAL PROPERTY TAX LAW SECTION 964. I  HAVE  ISSUED  A
RECEIPT  TO TRANSFEREE IN CONJUNCTION WITH THIS CERTIFICATION REFLECTING
THE PAYMENT FOR THE TRANSFER IN THE AMOUNT OF TAXES,  PENALTIES,  INTER-
EST, AND COLLECTION COSTS DUE. THE TAX LIEN IS TRANSFERRED TO THE TRANS-
FEREE EFFECTIVE THIS DATE.
__________________________________________  (SIGNATURE OF TREASURER (TAX
COLLECTOR, COMPTROLLER, REAL PROPERTY DIRECTOR)
SEAL OF TAXING DISTRICT DATE:_____________________________________
(IF NO SEAL OF OFFICE CAN BE PROVIDED, SIGNATURE SHOULD BE NOTARIZED.)
  2. IF A PROPERTY OWNER AUTHORIZES THE TRANSFER OF PROPERTY  TAX  LIENS
FOR  MULTIPLE  YEARS  OR FOR MULTIPLE LIENS ASSESSED OR COLLECTED BY THE
SAME TAXING DISTRICT, THE STATEMENT CERTIFYING THE TRANSFER OF THE LIENS
SHALL BE COMBINED INTO ONE FORM.
  3. A TAXING DISTRICT MAY CHARGE A REASONABLE FEE NOT TO  EXCEED  TWEN-
TY-FIVE  DOLLARS  FOR  EACH STATEMENT CERTIFYING THE TRANSFER OF THE TAX
LIENS ON PROPERTY.
  S 965. PROPERTY TAX LIEN PAYMENT AGREEMENT. 1. A  PROPERTY  OWNER  MAY
ENTER  INTO  A  PROPERTY  TAX LIEN PAYMENT AGREEMENT WITH A PROPERTY TAX
PAYOR.
  2. SAID AGREEMENT SHALL SET FORTH SUCH TERMS AND CONDITIONS  TO  WHICH
THE  TRANSFEREE AND THE PROPERTY OWNER MAY AGREE REGARDING THE REPAYMENT
OF THE TAX LIEN TO THE TRANSFEREE.
  3.  ANY FEES TO EFFECT OR SERVICE A TRANSFERRED LIEN MAY, AT THE PROP-
ERTY OWNER'S REQUEST AND WRITTEN CONSENT, BE CONTAINED  IN  AND  MADE  A
PART  OF  THE AMOUNTS OWED UNDER THE PROPERTY TAX LIEN PAYMENT AGREEMENT
AND THE AMOUNTS SECURED BY THE TRANSFERRED TAX LIEN.    IF  THE  SUBJECT
PROPERTY  IS  OWNED  AND  OCCUPIED BY THE PROPERTY OWNER, THE ADDITIONAL
FEES CONTRACTED FOR IN THE PROPERTY TAX LIEN PAYMENT AGREEMENT SHALL  BE
LIMITED  AS  FOLLOWS: AN APPLICATION FEE NOT TO EXCEED TWO HUNDRED FIFTY
DOLLARS, A FEE FOR TITLE CHARGES NOT TO  EXCEED  FOUR  HUNDRED  DOLLARS,
REASONABLE  AND  CUSTOMARY  ATTORNEY'S  FEES  NOT TO EXCEED ONE THOUSAND
DOLLARS, AND REASONABLE AND CUSTOMARY CLOSING COSTS NOT TO  EXCEED  FIVE
HUNDRED  DOLLARS.  THE  PROPERTY  TAX LIEN PAYMENT AGREEMENT MAY PROVIDE
THAT IN THE  EVENT  THAT  THE  PROPERTY  OWNER  INITIATES  A  BANKRUPTCY
PROCEEDING,  THE  PROPERTY  TAX  PAYOR  SHALL BE ENTITLED TO RECOVER ALL
FEES, INTEREST AND COSTS INCURRED IN PROTECTING ITS RIGHTS IN SAID BANK-
RUPTCY.
  4. THE PROPERTY TAX PAYOR MAY COLLECT INTEREST AT THE RATE OF INTEREST
CHARGED ON DELINQUENT LIENS BY THE TAXING DISTRICT THAT TRANSFERRED  THE
TAX LIEN.  THE AMOUNT OWED MAY INCLUDE TAXES, PENALTIES, INTEREST, FEES,
AND  COSTS  AS AGREED TO BETWEEN THE PROPERTY OWNER AND THE PROPERTY TAX
PAYOR, BUT MAY NOT INCLUDE FUNDS ADVANCED TO THE PROPERTY OWNER FOR  ANY
OTHER PURPOSE. IF THE PROPERTY OWNER OWNS AND OCCUPIES THE SUBJECT PROP-

S. 2976--B                          5

ERTY  AS  HIS PRIMARY RESIDENCE, THE AGREEMENT MAY NOT CONTAIN A PENALTY
FOR EARLY PAYMENT OF THE AMOUNTS OWED UNDER THE AGREEMENT.
  5.  NOTHING  CONTAINED WITHIN THIS SECTION SHALL BE DEEMED TO CREATE A
MORTGAGE, NOTE OR OTHER INSTRUMENT GOVERNED BY ANY LAW, STATE OR  FEDER-
AL, REGULATING MORTGAGE AGREEMENTS, NOR SHALL THE AMOUNT OWED BE CONSID-
ERED  DEBT  FOR  PERSONAL,  FAMILY  OR  HOUSEHOLD PURPOSES. THE TAX LIEN
PAYMENT AGREEMENT SHALL BE DEEMED A CONTRACT FOR THE  PAYMENT  OF  TAXES
AND  ASSOCIATED  OBLIGATIONS  AND  SHALL  BE  GOVERNED BY THIS TITLE AND
GENERAL PRINCIPLES OF CONTRACT LAW, EXCEPT FOR THE FORECLOSURE  OF  SAID
AGREEMENT,  WHICH  IS  SUBJECT TO THE RULES AND REGULATIONS AS GOVERNING
MORTGAGE FORECLOSURES AS DETAILED  IN  THE  REAL  PROPERTY  ACTIONS  AND
PROCEEDINGS LAW.
  S  966.  FORECLOSURE. 1. IF AT ANYTIME THE PROPERTY TAX PAYOR FILES TO
FORECLOSE UPON THE TERMS AND CONDITIONS OF THE PROPERTY  TAX  AGREEMENT,
THE PROPERTY TAX PAYOR SHALL FORECLOSE PURSUANT TO REAL PROPERTY ACTIONS
AND PROCEEDINGS LAW AS IF FORECLOSING A MORTGAGE.
  2.    THE  PROPERTY  TAX  PAYOR  IS ENTITLED TO RECOVER REASONABLE AND
CUSTOMARY COSTS AND FEES IN A FORECLOSURE PROCEEDING. THE COSTS AND FEES
MUST BE APPROVED BY A COURT OF COMPETENT JURISDICTION, AND THE  PROPERTY
TAX  PAYOR MAY BE BE REQUIRED TO SUBMIT PROOF OF THEIR INCURRENCE TO THE
COURT. RECOVERABLE FEES AND COSTS MAY INCLUDE:
  (A) ATTORNEY'S FEES;
  (B) CHARGES TO VERIFY OWNERSHIP OF THE PROPERTY, NOT  TO  EXCEED  FOUR
HUNDRED DOLLARS;
  (C)  FEES  FOR RECORDING NOTICES AND DOCUMENTS RELATED TO THE FORECLO-
SURE;
  (D) COSTS OF PROVIDING NOTICE, INCLUDING SERVICE OF PROCESS AND ADVER-
TISEMENT; AND
  (E) OTHER FEES AND COSTS LEGALLY REQUIRED TO FORECLOSE.
  3. A FORECLOSURE OF A TAX LIEN TRANSFERRED AS PROVIDED BY SECTION NINE
HUNDRED SIXTY-TWO OF THIS TITLE MAY NOT BE INSTITUTED  WITHIN  ONE  YEAR
FROM THE DATE ON WHICH THE LIEN IS RECORDED IN ALL COUNTIES IN WHICH THE
PROPERTY  IS  LOCATED, UNLESS THE TAX LIEN PAYMENT AGREEMENT BETWEEN THE
OWNER OF THE PROPERTY AND THE TRANSFEREE PROVIDES OTHERWISE.  A FORECLO-
SURE PROCEEDING TO COLLECT THE AMOUNT OWED PURSUANT TO A TRANSFERRED TAX
LIEN OR A PROPERTY TAX LIEN PAYMENT AGREEMENT MAY NOT  BE  INITIATED  IF
THE TAXING DISTRICT WOULD BE BARRED FROM INSTITUTING A PROCEEDING DUE TO
THE STATUTE OF LIMITATIONS.
  4.  NOTHING  IN THIS SECTION SHALL BE DEEMED TO AFFECT THE RIGHTS OF A
TAXING DISTRICT UNDER ARTICLE ELEVEN OF THIS CHAPTER OR AFFECT OR EXTEND
THE RECONVEYANCE PERIOD, SUBJECT TO SECTION NINE HUNDRED SIXTY-SEVEN  OF
THIS TITLE.
  S  967. RECONVEYANCE. 1.  THE PROPERTY OWNER OR A PRIOR RECORDED FIRST
LIEN MORTGAGEE MAY OBTAIN A RELEASE  OF  THE  TRANSFERRED  TAX  LIEN  BY
PAYING  THE  PROPERTY  TAX  PAYOR ALL AMOUNTS DUE UNDER THE PROPERTY TAX
LIEN PAYMENT AGREEMENT AT ANY TIME AFTER THE PROPERTY TAX PAYOR FILES  A
LIS  PENDENS  IN CONNECTION WITH A FORECLOSURE PROCEEDING OF THE SUBJECT
PROPERTY.  IF A PROPERTY TAX PAYOR FORECLOSES ON A TAX LIEN  TRANSFERRED
AS  PROVIDED BY SECTION NINE HUNDRED SIXTY-TWO OF THIS TITLE, THE PERSON
WHOSE PROPERTY IS SOLD AS PROVIDED BY SECTION NINE HUNDRED SIXTY-SIX  OF
THIS  TITLE  OR THE MORTGAGE SERVICER OF A PRIOR RECORDED FIRST MORTGAGE
LIEN MORTGAGEE IS ENTITLED TO  COMPEL  RECONVEYANCE  OF  THE  FORECLOSED
PROPERTY  FROM THE OWNER AT THE TIME OF RECONVEYANCE BY PAYING THE OWNER
AT THE TIME OF RECONVEYANCE:
  (A) ONE HUNDRED TWENTY PERCENT OF THE AMOUNT PAID BY THE PURCHASER  AT
THE FORECLOSURE SALE; AND

S. 2976--B                          6

  (B)  THE  AMOUNT  REASONABLY SPENT BY THE PURCHASER IN CONNECTION WITH
THE MAINTENANCE AND SAFE KEEPING OF THE PROPERTY PLUS THE LEGAL JUDGMENT
RATE OF RETURN ON THAT AMOUNT. THE  PROPERTY  PURCHASER  SHALL  ONLY  BE
ENTITLED  TO  RECOVER  THE  COSTS CONTAINED WITHIN THIS PARAGRAPH IF THE
PURCHASER  PROVIDES  WRITTEN  PROOF OF ANY AND ALL COSTS INCURRED IN THE
UPKEEP OF THE PROPERTY PRIOR TO RECONVEYANCE.
  2. THE RIGHT OF RECONVEYANCE PROVIDED BY THIS SECTION MAY BE EXERCISED
NOT LATER THAN THE ONE HUNDRED EIGHTIETH DAY AFTER THE DATE ON WHICH THE
REFEREE'S DEED IS FILED IN THE OFFICE OF THE COUNTY CLERK OF THE  COUNTY
WHERE THE PROPERTY IS SITUATED.
  S  968.  DISTRIBUTION OF TAX LIEN INFORMATION. 1. TWICE ANNUALLY, EACH
TAXING DISTRICT SHALL PROVIDE THE STATE COMPTROLLER A REPORT, IN SPREAD-
SHEET OR  COMMA  DELIMITED  ELECTRONIC  FORMAT,  OF  ALL  REAL  PROPERTY
ACCOUNTS  IN  SAID  TAXING DISTRICT THAT HAVE UNPAID PROPERTY TAXES. THE
REPORTS SHALL BE DUE ON OR AROUND JANUARY FIRST AND OCTOBER FIRST.   THE
JANUARY  REPORT  SHALL  CONTAIN  A LISTING OF ALL TAX ACCOUNTS THAT SHOW
REAL PROPERTY TAXES DUE. THE OCTOBER REPORT SHALL CONTAIN A  LISTING  OF
ALL  TAX  ACCOUNTS  THAT  SHOW  REAL PROPERTY TAXES DELINQUENT. FOR EACH
ACCOUNT, SAID LISTINGS SHALL INCLUDE THE DATA FROM THE TAX ROLL  OF  THE
TAXING  DISTRICT, INCLUDING BUT NOT LIMITED TO THE PROPERTY OWNER'S NAME
AND ADDRESS, THE PROPERTY ADDRESS, THE PROPERTY PARCEL  IDENTIFIER,  THE
PROPERTY  TYPE  CLASSIFICATION CODE (FOR EXAMPLE, AGRICULTURAL, RESIDEN-
TIAL, COMMERCIAL, OR VACANT LAND), THE ASSESSED VALUE OF THE REAL  PROP-
ERTY  AND THE IMPROVEMENTS THEREON, THE EXEMPTIONS, IF ANY, ON THE PROP-
ERTY, AND THE YEAR(S) AND AMOUNT DUE OR DELINQUENT.
  2. THE STATE COMPTROLLER SHALL CONSOLIDATE THE REPORTS FROM ALL TAXING
DISTRICTS. THE STATE COMPTROLLER  SHALL  MAKE  THE  CONSOLIDATED  REPORT
AVAILABLE  TO ANY PERSON UPON REQUEST, IN SPREADSHEET OR COMMA DELIMITED
ELECTRONIC FORMAT, AT A REASONABLE PRICE  NOT  TO  EXCEED  FIVE  HUNDRED
DOLLARS.
  3.  THE  STATE  COMPTROLLER  SHALL  PROMULGATE RULES TO IMPLEMENT THIS
SECTION.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.